Last time i blog why 10 reasons to be bullish on a stock was (NASDAQ:IDRA). It was around $1.70ish when i wrote it and definitely hit my short term target very quickly. (IDRA) is now trading @ $5.78 as of 3/7/14. This next stock that I'm blogging is about to do the same with so many up coming catalysts. The stock is Neptune Technologies & Bioresources, Inc. (NASDAQ:NEPT).
Please note this is just my quick Due Diligence (NYSE:DD) why Im bullish and long this stock. Any stock investment is risky so always do your own DD for more details about the company.
Reasons to be bullish:
1.) Recently closing their 10M common shares @ $2.50 finance.yahoo.com/news/neptune-announces-closing-us-25-141100161.html
2.) Rebuild of the Sherbrooke facility expected to open sometimes March, 2014 finance.yahoo.com/news/neptune-reports-third- quarter-results-123000625.html this is a big catalyst as the company ready to ramp up their production (big catalyst )
3.) Settlement with Enzymotec (NASDAQ:ENZY) to be completed in the next 45- 60days for patent Litigation finance.yahoo.com/news/neptune-acasti-patent-litigations-enzymotec-145225370.html possible bring more royalty and one time payment from Enzymotec. This will help company for their future grow. (catalyst)
4.) NEPT has a subsidiary called Acasti (NASDAQ:ACST). Acasti is ~50% owned by NEPT. (ACST) Phase 2 CaPre to completed 1h '14. www.acastipharma.com/en/investor-relations/press-releases/170-acasti-announces-third-quarter-results If successful bring significant to NEPT future pipeline (Catalyst)
5.) ROYALTRY ROYALTAY ROYALTY!!! Competitors have to pay royalty to NEPT for every sales in US market and some overseas. Recently settle with Aker Biomarine and Rimfrost. Enzymotec likely to be next.
6.) Strong Intellectual Property (NYSE:IP) www.neptunebiotech.com/en/intellectual-property-regulatory-affairs for selling Krill oil as a nutraceutical
7.) Untapped market potential. The Omega 3 fish oil sale is 1.8 billions in 2011 to reach more than $3.1 Billions in annual sales within next few years. Krill oil is superior to Omega and the market soon to appreciate the growth and this will price appreciate NEPT stock.
8.) Yet to be discovered by institution. Per NASDAQ, there are only 13% institutional ownership. I viewed this as a positive because this is where less market manipulation and you can buy shares cheap before the institution are buying.
9.) Stock was trading in the $4-5 range before the Sherbrooke facility explosion. As we are getting closer to the rebuild and new operational facility i expect this to be trading in that price range in coming months.
10.) Stock pps as of 3/7 is $2.70 with the Market Cap (NYSE:MC) @$165.47M. This is very low and trading almost near 52wks low. The only way this will go is up and potential double up the MC cap in months and possible triple by year end.
Price Target (NYSE:PT) short term $3.30-3.70+ in few months. PT $7+ long term hold.
Reason to be bearish:
Disclosure: I am long NEPT.
Additional disclosure: I wrote this article myself and expresses my own opinions. Im not receiving any compensation for it. I have no affiliate with any of the company mentioned above. Im not adviser and suggest you do extra due diligence before taking position. Small cap bio tech always present with great risk and reward.